What is timeline for VAT Registration?

If a person has made taxable supplies with a value exceeding the Mandatory Registration Threshold over the previous 12 months, the person must notify the FTA within 30 days of exceeding the threshold. The VAT registration will take effect from the start of the month following the month in which the person is required to register.

If a person anticipates making taxable supplies with a value exceeding the Mandatory Registration Threshold in the next 30 days, the person must notify the FTA that they are required to be registered within 30 days starting on the date that the expectation arises. The VAT registration will take effect from the day on which the person had reasonable grounds for believing that they would exceed the Mandatory Registration Threshold.

Finally, if the person is not a resident of the GCC Implementing States and they are required to register for VAT, the registration will be effective from the date on which the person started making supplies in the UAE.

Check the below example to understand the VAT registration requirements in UAE.

On 1 June, a person exceeds the Mandatory Registration Threshold for the prior 12 month period. The person must inform the FTA that they are required to be registered by 30 June. The VAT registration will take effect from 1 July.